MYTH-25. INVESTING IN NFOs AND IPOs ARE THE SAME THING




·         The two are very different from each other.

·         New Fund Offer (NFO) is by a fund house for subscription into a fund that it is launching, and where a fund manager will take care of your invested money.

·         An Initial Public Offer (IPO) is an offer by a company to subscribe to its shares when it is being listed on the stock exchange.

·         In case of an IPO, there are no fund managers to take care of the money invested, and the returns on your invested money would depend on the performance of the company and also the market as a whole.